Budgeting for Events: Venue Reports

The first chapter of this report discusses many issues concerned with event organization. The author writes about how the feasibility of a sports event can be determined, how finances can be organized and budgeted in order to realize the success of a particular sports event, and the risk management involving the organization of sports events. The second chapter covers issues such as planning the revenue realized from particular sports and how various event assets can be used to generate revenue for a particular sports event.

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The importance of implementing financial planning is emphasized throughout chapter 5 of this book. It must be realized that for the success of an event to be crystallized out, there is a particular organizational framework that has to be formulated. This framework acts as a guide to an orderly arrangement of a sports event. The managerial staff has to determine the feasibility of an event. This is the first step that organizers have to undertake before the decision to continue with the planning is made. The feasibility studies include the affordability, desirability, marketability, and manageability of the sports event.

Financial planning is the next stage in sports event organization. During this stage, the future objectives and directions of the organization and the individual events are considered for discussion (Masterman, 2009). The objectives of all the events are supposed to be aligned with the organization’s objectives. The business objectives are also set during the organization of sports events. Such objectives include maximization of sales, maximization of profits, and the improved return on investment through dividends to shareholders or the reinvestment of profits into the business for growth.

Budgeting for events involves the identification of the sector in which revenue will be derived from, determining the costs and the setting of performance targets that will realize the objectives set. These targets are also useful in determining the performance against the budget. It therefore acts as a means of aligning the event with the set objectives (Masterman, 2009). The revenue targets include the exploitation of the event together with its assets in order for the organizers to realize the desired returns.

The expenditure targets on the other hand have to be off set against the revenue raised to aid in the calculation of profits or losses. The proposed size of the attendance can be used to calculate the cost of the event. The costs can also be variable or direct. Variable costs are those costs that can increase or decrease with respect to the size of attendance. Direct costs do not vary despite the number of people attending the event. The costs may be in form of accommodation and subsistence fees. A particular example of how events can be organized is the one pertaining to the financial management of the Sydney Olympics in 2000, given in this book.

Financial control can also be used to improve the income of a sports event. It can be used to reduce financial risks so that revenue planning can be done easily. The financial management of London 2012 Olympics is given as a good example in which the organization of the managerial staff is summarized to decipher how success can be achieved with such in depth planning (Masterman, 2009).

Event revenue maximization can be realized in several ways that the author has discussed in chapter six of this book. Planning of the revenue can be done through event external funding. Thus, external funding can be used to acquire income during a sports event. Commercial enterprises and government support can be used to finance sports events. In the United Kingdom, funding of large sporting events is done by the National Lottery via funds that are allocated for sports events (Masterman, 2009). Generation of incomes through acquisition of specific revenues can be used to develop income. Sponsorship programs can also be explicit ways of generating incomes (India today, 2010).

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The assets of an event can also be used to generate income. These assets are categorized into several ways. One way of classifying the assets is the media rights and partnership. Media rights and partnership can be further classified into radio broadcasting, press coverage, and internet broadcasting. Television broadcasting is used if the event is powerful enough so that it sells its rights to home and international broadcasters (Masterman, 2009).

Radio broadcasting is usually less rewarding than television broadcasting because they do not reach a larger audience. It is also possible to secure exclusive rights to press coverage for events in that some press can cover topics that contain insights through sports celebrities.

Ticket sales are also events assets because they are other ways in which they generate income. The life cycle of ticket sales lasts from the time when the decision for the event to continue is made through the end of the event. Ticket sales revenue depends on many factors that include the price of the ticket. An event’s sponsorship program can be developed by placing the right sponsorship with the right organization. Thus, sponsorship can be viewed as an asset for sports events. Another way in which sports assets can be grouped is through space sales (Masterman, 2009). On-site sale is done either internally or externally, on regularly used spectator routes.

They can be of interest to organizations as exhibition, demonstration or sale space. The printed form of space sale is also an event asset used to generate income. Internet opportunities are also gaining use as events assets especially in space sale. A good example is the 49ers.com, which is used as a website income generation. Formula 1 is also another example of website income generation given in this chapter. Other income generating activities include merchandising, mobile telecommunication opportunities and licensing programs.

Therefore, financial management is clearly recognized as an essential element for the success of an event. Event organizers have to agree on particular objectives that are workable in order for them to realize the success of sporting events. The managers have to be creative in generating revenue. Many event assets can be used to generate revenue for sports events. They include space sale, ticket sales, and licensing.

Reference List

India today, (2010). Dismal Revenue Collection for Games Organizing Committee. Web.

Masterman, G. (2009). Strategic Sports Event Management: Olympic Edition. New York: Butterworth-Heinemann.

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StudyCorgi. (2021) 'Budgeting for Events: Venue Reports'. 12 March.

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